What was the total amount of Cinnabon's advertising funds liabilities as of December 29, 2024?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 29, | December 31, | |
|---|---|---|
| 2024 | 2023 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 11,594 | $ 22,662 |
| Restricted cash and cash equivalents - securitization | 32,747 | 29,582 |
| Accounts receivable, net of allowance for credit losses of | ||
| $1,748 and $1,143 in 2024 and 2023, respectively | 44,272 | 37,049 |
| Inventories | 1,128 | 978 |
| Prepaid expenses and other current assets | 12,118 | 9,263 |
| Advertising funds assets | 9,927 | 7,643 |
| Intercompany receivables from Parent | 3,277 | 3,277 |
| Total current assets | 115,063 | 110,454 |
| Property, equipment, leasehold improvements and land, net | 71,417 | 71,199 |
| Operating lease assets, net | 62,676 | 69,535 |
| Goodwill | 122,714 | 122,714 |
| Intangible assets, net | 496,479 | 495,389 |
| Long-term other assets | 13,986 | 13,305 |
| To |
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the company's advertising funds liabilities totaled $8,418 as of December 29, 2024. This figure represents the accruals for future advertising fund and local fund expenditures. These funds are collected from franchisees and are earmarked for marketing and advertising activities.
Cinnabon records the collection and distribution of these funds as pass-through transactions, meaning they act as an intermediary. The advertising funds assets primarily consist of receivables from franchisees and company-owned stores, as well as vendor receivables and prepayments. The funds collected are used for both national advertising campaigns and local marketing efforts managed either by Cinnabon or the franchisees themselves.
For a prospective franchisee, understanding these advertising fund liabilities is crucial. It provides insight into the financial management of advertising resources and how Cinnabon ensures that collected funds are allocated for their intended purpose. It also shows the franchisee the amount of money Cinnabon owes for advertising and marketing costs. Franchisees should inquire about the specific allocation of these funds and the impact of advertising strategies on their individual store performance.